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EU Delays Auto Rules Review, Signals Flexibility on 2035 Engine Ban

The Commission is reworking an early January auto package following Germany's push for exemptions to keep some combustion technologies.

Overview

  • A European Commission meeting slated for December 10 to advance the auto package has been pushed to early January, according to industry reports.
  • Transport Commissioner Apostolos Tzitzikostas said Brussels is open to all technologies, citing potential roles for zero‑ and low‑emission fuels and advanced biofuels.
  • German Chancellor Friedrich Merz formally asked for exemptions covering plug‑in hybrids, extended‑range EVs and highly efficient internal‑combustion cars.
  • Industry discussions indicate the package could include strict electrification quotas for rental, leasing and company fleets by 2030, a prospect rental firms such as Sixt oppose due to charging gaps and recent losses in EV deployments like Hertz’s 2024 write‑down.
  • Volvo and Polestar urged keeping the 2035 phase‑out to protect electrification momentum and competitiveness versus Chinese automakers, while BMW and others advocate technology neutrality and investors at UBS expect a more flexible outcome.